Andrew Bridgen, chief economist at Fathom Consulting, said as many as one in five pension schemes could fail and be forced to enter the Pension Protection Fund as demand for index-linked gilts far outstrips supply.

If the number is that high, Bridgen told delegates at the National Association of Pension Funds’ annual investment conference, the government – and eventually the taxpayers – would have to step in.

Bridgen said: “Demand for fixed income assets, and index-linked fixed income in particular, rises sharply just as the supply of all gilts is falling.

“On current issuance plans, we predict a £500 billion black hole in the index-linked gilt market.”

Mark Gull, head of fixed income at the Pension Insurance Corporation, agreed that the UK would remain in a situation of “financial repression” in the years to come. Defined benefit pension liabilities total £1.7 trillion, according to numbers presented by Gull, but the size of the index-linked gilt market is less than £500 billion.

However, he was more upbeat about other index-linked investments.

Gull said infrastructure, for instance, was one option, but added that demand would also outstrip supply.